Financial Crime World

Turks and Caicos Islands: AML/CFT Mutual Evaluation Report Summary

Overview

The Fourth Round Mutual Evaluation Report of the Turks and Caicos Islands, specifically related to Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT), has been reviewed. Key points for each criterion are summarized below.

Customer Due Diligence (CDD)

  • Criterion 10.16: Deficiency in CDD addressed through Legal Notice 134 of 2021, which amended Regulation 11(c). Financial Institutions (FIs) must review existing customers’ CDD based on materiality and risk factors.
  • No Deficiency Found:
    • Criterion 10.17: Enhanced Due Diligence (EDD) measures are applied for specific situations or when there’s a higher risk of money laundering/terrorism financing, as per Regulation 13(2) AMLR.
    • Criterion 10.18: Simplified CDD measures do not exist in the current framework.

Suspicious Transaction Reports

  • Criterion 10.19: No deficiency found related to when a failure to satisfactorily complete CDD would establish, terminate, or continue a business relationship and consider making a Suspicious Transaction Report (STR).

Deficiency Found

  • Criterion 10.20: A deficiency exists as the Financial Services Commission Ordinance empowers the Money Laundering Reporting Officer (MLRO) to not pursue CDD if they suspect money laundering/terrorism financing, and instead require a suspicious activity report.

Weighting and Conclusion

Turks and Caicos Islands has addressed all deficiencies via amendments to the AML/CFT Code and Regulations. The country is re-rated as Compliant with Recommendation 10 (R.10).

Recommendation 14: Money Service Business (MSB)

  • Criterion 14.2: It is an offence to carry on a MSB without a license, and penalties include fines and imprisonment.
  • Additional Measures:
    • The Financial Services Commission can identify and investigate persons carrying out money service business without a license.
    • An examiner can be appointed to conduct an examination where there are reasonable grounds for suspicion of unauthorized financial services business.
    • Public statements can be issued regarding unauthorized financial services.

Original Rating: Partially Compliant

Due to the amendments made in the Money Transmitters (Amendment) Ordinance 2021, the country has broadened the definition of money transmission to include various payment forms.